Buyers shop at Co.op Mart in HCM City. The CPI in January will fluctuate slightly and see a minor reduction. — VNA/VNS Photo Thanh Vu

HA NOI (Biz Hub) — The Consumer Price Index (CPI) in January will fluctuate slightly and see a minor reduction, the Price Management Department under the Ministry of Finance, forecast.

January is the month before the Tet holiday, so prices in the local market are affected by some factors, including production demand, processing and consumption of goods for the Tet festival, while purchasing power experiences solvency at the end of the year, which pressures prices, the department pointed out.

However, there will be some positive factors supporting the stability of the local market and price increases will be controlled, including a slight decrease in prices of essential goods and materials in the global market, the department said.

In the domestic market, ministries, provinces/cities and enterprises will collaborate in preparation for Tet, and implement price stabilisation and market inspection, in accordance with the Prime Minister's directions.

These enterprises will also launch trade promotions and discount programmes during the last month of the lunar year to reduce the chances of price increases in the market, the department stated.

Additionally, the reduction in petrol and gas prices and transportation fee, will stabilise the prices of sugar and milk for younger children (below six years), as well as steel and medicines, reported chinhphu.vn.

Vietcombank Securities Company also said CPI in January is expected to slip by 0.35 to 0.45 per cent against December, but increase by 0.6 to 0.7 per cent, compared with the same period last year, the Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) newspaper reported.

Purchasing power has not seen strong recovery, while the reduction in petrol and energy prices, will help enterprises cut input costs, resulting in the prices of goods and services dropping.

According to the department, rice and food prices could increase and benefit production and consumption during the Tet festival, but the price appreciation will not be much due to stable supply. — VNS